Tata Motors has sought loans from the British government for the working capital needs of Jaguar Land Rover, company sources said today.

The request comes after a statement issued by UK business secretary Lord Mandelson that the government would help where it can but it does not have an open cheque book which can be used to bail out any industry.

Tata Motors is reported to have made it clear that it is only looking for a government loan as banks have stopped lending and there is no other way of getting affordable loans.

Tata Motors also said it is only looking for a bridge loans until such time that it can arrange funds from banks or the market.

With several of UK's car plants closed, the Society for Motor Manufacturers and Traders (SMMT) in the UK is also seeking a similar arrangement by the government, either as loan at commercial rates or guarantees for bank loans.

Reports also said the government is working with the industry to put together a package for the ailing motor industry before the Christmas break.

The industry insists that it cannot restart the stalled market without an improvement in liquidity as the credit problem has affected everyone, including car makers, dealers, component suppliers and consumers.

While reports said the Tata Group is prepared to inject tens of millions of pounds into Jaguar Land Rover, there has also been speculation that it cannot survive without government support.

The government, meanwhile, is expected to focus on the industry as a whole rather than worry too much about one company.

Both the JLR management and workers have warned that the government must act quickly to safeguard the industry and the tens of thousands of jobs and the many communities across the country depending on car manufacturing for their livelihoods.

Time, however, is running short for both the carmakers and the government to finalise a recovery plan.